Key announcements in the 2024 Spring Budget

The freeze on fuel duty will be welcome news for those who rely on road travel and freight

Given it’s an election year, the 2024 Spring Budget was widely expected to focus on individuals. But there were plenty of announcements that will directly impact the businesses and sectors we serve.

Moves like the fuel duty freeze will clearly make an immediate difference to the financial trading of any company that relies on logistics in its supply chain, but the Chancellor also announced other measures that will likely influence the way businesses plan for the financial year ahead. Whether you specialise in facilities management, utilities and construction or ground maintenance here are some of the key points of interest:

Fuel duty freeze

Fuel duty has been frozen again with the 5p cut extended for another year. This will enable companies specialising in logistics – and the businesses that rely on them in their supply chain – to accurately forecast costs going into the next financial year.

Full expensing

Full expensing might have been made permanent in November’s Autumn Statement but the plans to extend it to leased assets could represent a real bonus for the logistics sector in particular. Full expensing means businesses can claim back 25p in corporation tax for every £1 invested in IT, machinery and equipment. There’s no set timeframe for the leasing element of the policy to be rolled out but a draft bill is due to be published soon.

Investment zones and clean energy

The government is keen to emphasise its commitment to infrastructure and innovative industry. This includes a £120m fund to invest in green energy projects. This is likely to eventually translate to new and ambitious construction projects being signed off before this year’s scheduled general election. Companies specialising in waste management will be keeping a keen eye on further developments around sustainability and net zero targets.

Air passenger duty

The airline industry has rallied since the disruption of Covid and is set for consistent growth in the years ahead. The raising of air passenger duty for non-economy passengers will hit business-class travellers hardest, but critics warn that the move adds to the UK’s already mounting aviation taxes and airport charges and could be a drag on the sector.

Labour market

The Chancellor announced measures at alleviating the labour shortage that many firms are experiencing. The 2p cut in National Insurance as well as the changes to child benefit thresholds (from £50,000 to £60,000) are designed to encourage more workers back into employment by making the financial rewards clearer.

Growth of the economy

Finally, The Office for Budget Responsibility (OBR) is forecasting that the UK economy could grow faster than previously predicted. The OBR’s updated figures predict the UK economy will grow by 0.8% this year and 1.9% in 2025 – some welcome positivity after a sustained period of low growth and high inflation.

At Contego, we appreciate that nothing stands still in the sectors we serve. Our friendly team are always on hand to provide you specialist guidance and advice on how best to meet your PPE and workwear requirements in the year ahead. You can contact them on 0800 122 3323 or sales@contegosafety.co.uk

 

Published on 7 March 2024
Filed under  News • PPE and safety workwear suppliers • PPE news 

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